3 years ago

Why is compounding interest monthly better than yearly ?

Business

1 answer:

dalvyx [7]3 years ago

6 0

Answer:

More interest payments on yearly computing.

Explanation:

It is generally said that if you can get monthly annual payments compared to yearly payments take it without a thought. This statement explains a lot; normally month payments are not available, but in some case they are. In annual payments, 12 months are compounded that is why it is higher rate compared to monthly. So, monthly payments are preferred

You might be interested in

As a medium-sized grocery retailer, your marketing and merchandising teams find themselves at a constant disadvantage when negot

frutty [35]

Hence proved hope it will help you

4 0

3 years ago

Kathy has $50,000 to invest today and would like to determine whether it is realistic for her to achieve her goal of buying a ho

Tresset [83]

Answer:

So she must achieve about 11.61 %

Explanation:

Amount invest by Kathy = $50000

She wanted to buy a home for $150000

Time of investment = 10 years

We have to find the return which she received

Let she receives x return

So according to question $50000\times (1+x)^{10}=150000$

$(1+x)^{10}=3$

$(1+x)=3^{0.1}$

$(1+x)=1.1161$

$x=0.1161=11.61%$

So she must achieve about 11.61 %

4 0

3 years ago

Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 36,500 miles. Management also believes tha

Lelechka [254]

Answer:

$0.013

0.010724

Explanation:

Given that :

Mean, m = 36500

Standard deviation, s = 5000

Refund of $1 per 100 mile short of 30,000 miles

A.) Expected cost of the promotion :

P(X < 30,000)

Using the Zscore relation :

Zscore = (x - m) / s

Zscore = (30000 - 36500) / 5000

= - 6500 / 5000

= - 1.3

100 miles = $1

1.3 / 100 = $0.013

b. What is the probability that Grear will refund more than $50 for a tire?

100 miles = $1

$50 = (100 * 50) = 5000 miles

Hence, more than $50 means x < (30000 - 5000) = x < 25000 miles

P(x < 25000) :

(25000 - 36500) / 5000

-11500 / 5000

= - 2.3

P(z < - 2.3) = 0.010724 (Z probability calculator)

3 0

3 years ago

Portal Palace is a door manufacturer that is considering moving into a new regional market. Which of the following would be info

Liono4ka [1.6K]

Answer:

Explanation:

Because they need to know they will be successful in the new market.

3 0

4 years ago

Individual marketing across segments creates more total sales than any other type of marketing.

Flura [38]

Answer:

false

Explanation:

7 0

3 years ago